HBL Microfinance Bank has entered into an agreement with 1LINK (Pvt) Limited and Euronet Pakistan to introduce what the partners describe as Pakistan’s first PayPak credit card in the microfinance sector. The initiative is aimed at providing microfinance customers with additional options for accessing credit and making payments, bringing a domestic payment card network and payment technology together with the bank’s experience in serving microfinance customers. The agreement represents a new development in Pakistan’s microfinance and card payments landscape.
The agreement was signed by Amir Khan, President and Chief Executive Officer of HBL Microfinance Bank, Najeeb Agrawalla, Chief Executive Officer of 1LINK, and Kashif Gaya, Chief Executive Officer of Euronet Pakistan. Ali Raza Anjum, Chief Operating Officer of HBL Microfinance Bank, also attended the signing ceremony. The participation of the three organizations brings together different components required for the proposed card solution, including microfinance customer understanding, domestic payment infrastructure and technology capabilities.
Under the partnership, HBL Microfinance Bank will work with 1LINK and Euronet Pakistan to develop the PayPak credit card for customers within the microfinance segment. PayPak is Pakistan’s domestic payment scheme, while 1LINK operates the country’s shared payment infrastructure. Euronet Pakistan brings payment technology capabilities to the arrangement. The collaboration is intended to combine these components into a credit product designed specifically for customers served by the microfinance banking sector.
The proposed credit card is expected to provide microfinance customers with greater flexibility in accessing credit and completing payments. Credit availability is an important component of financial services for customers who may require financing for personal needs, small businesses or other economic activities. By introducing a card-based credit facility within the microfinance segment, HBL Microfinance Bank is expanding the range of payment and credit channels available to its customer base.
The partnership also highlights the increasing role of payment infrastructure and technology in the development of financial services in Pakistan. Traditional microfinance services have increasingly been complemented by digital and card-based channels as financial institutions look to provide customers with more convenient ways to access and use financial products. The involvement of 1LINK and Euronet Pakistan in the initiative provides the technology and payment infrastructure required to support the proposed card, while HBL Microfinance Bank contributes its customer base and experience in microfinance.
The initiative brings together HBL Microfinance Bank’s understanding of the needs of microfinance customers with PayPak’s domestic payment network and Euronet’s technology capabilities. The companies said the collaboration is intended to create a new credit solution for customers whose financial needs may require greater access to formal credit and payment facilities. The development also reflects efforts within Pakistan’s financial sector to broaden access to banking and payment products across different customer segments.
The agreement involving HBL Microfinance Bank, 1LINK and Euronet Pakistan marks a step towards expanding card-based financial services within Pakistan’s microfinance industry. With the proposed PayPak credit card, the partners are seeking to provide microfinance customers with another method for accessing credit and making payments through a domestic payment network. The initiative adds a new technology-enabled product to the microfinance sector and brings together banking, payment infrastructure and financial technology capabilities in a single offering.
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